All Transactions Under The Crypto Market Are Controlled And Governed By The Crypto Community Itself Also Transactions Cannot Be Reversed
It is important to tread cautiously while investing in cryptocurrencies
Cryptocurrency is a relatively new concept in India and transacting in it is not exactly common knowledge. Yet people have been jumping on to the crypto bandwagon, mainly because of good returns which it guarantees.
Unlike trading in shares and debentures, which is governed by bodies like the Reserve Bank of India and Securities and Exchange Board of India, that safeguard the interest of investors, dealing in cryptocurrency is free from any third party control.
All transactions and operations under the crypto market are controlled and governed by the crypto community itself. Also while returns on investment in cryptocurrencies are high, the market is highly volatile and transactions once initiated, cannot be reversed.
Therefore before putting in your money in the crypto market, do go through the following tips:
It is important to first select a trading platform or the right crypto exchange. A crypto exchange is just like the stock market. There are several crypto trading platforms in India like WazirX, Coin DCX and CoinSwitch Kuber among others. A first time investor can choose from any of these to begin crypto trading.
Once a trading platform has been identified, an investor has to upload all the required documents online on the exchange to complete the KYC process.
An investor can either store the crypto currency in a digital wallet or can withdraw it in the form of money.
How To Sell Bitcoin
You can sell bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and peer-to-peer platforms. Typically, the process of selling bitcoin on these platforms is similar to the process used to purchase the cryptocurrency.
For example, you may only be required to click a button and specify an order type to conduct the sale. Depending on the market composition and demand at the venue, the offering price for Bitcoin may vary. For example, exchanges in South Korea traded bitcoin at a so-called kimchi premium during the run-up in its prices back in 2018.
Cryptocurrency exchanges charge a percentage of the crypto sale amount as fees. For example, Coinbase charges 1.49% of the overall transaction amount as fees.
Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. There are no limits on the amount of cryptocurrency you can sell, however.
How Do Crypto Exchanges Work
The way crypto exchanges work depends on their type of platform. Most crypto trading platforms are known as centralized exchanges, which function as a brokerage, acting as intermediaries between buyers and sellers.
Users can deposit money into exchanges to buy cryptocurrencies or deposit their own crypto to trade for other currencies, known as crypto-to-crypto trading. Traders can expect to pay a fee for converting one crypto to another, like when exchanging regular currencies at a bank .
In exchange for digital currencies, exchanges may accept a wide variety of payments, including credit card payments, direct bank transfers, credit or debit cards, money orders and even gift cards.
Dedicated crypto exchanges will allow you to withdraw your crypto funds and transfer them to another wallet of your choice. Others, especially those that focus on other assets, like stocks including Robinhood and eToro only let you purchase the crypto but not transfer it out of their web wallets.
What are the different types of crypto exchanges?
Crypto exchanges come in three varieties: centralized, decentralized, and hybrid.
Centralized exchanges are the most common and traditional type of crypto exchange. These are owned by private companies and offer investors a platform to trade cryptocurrency. This type of exchange tends to have higher trade volumes and liquidity and a greater number of trading pairs.
Examples: Binance, Coinbase, Kraken, Gemini
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Can You Trade Bitcoin In The Us
Bitcoin is currently the most accessible of several cryptocurrencies. Bitcoin can be purchased through several platforms today, including exchanges, brokerages, crypto wallets, and even electronic wallets like PayPal.
The eToro brokerage platform is available to all residents. It is attractive to younger investors because of its simplicity, ease of use on mobile devices, and the ability to copy other traders. People feel more at ease when buying and selling complex assets more easily, such as Bitcoin. With eToro, there are no commission fees, so you get to keep more of your hard-earned money.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Start Your Crypto Exchange
Now that you have seen the steps necessary to start your own crypto exchange, let’s examine them in more detail.
1.Obtain legal counsel to ensure licensing requirements are met.
Before you set your plan into action, it is important to seek legal counsel to understand the regulatory demands of your new venture. Proper licensing will need to be obtained in all jurisdictions in which the company plans to operate. In many places, cryptocurrency exchanges operate without significant oversight, as government and regulation have not yet caught up with technology, while in other places including the US, Bitcoin operators must be licensed Money Transmitter businesses and must follow SEC and CFTC rules and regulations among others. Proper legal counsel is a must. It is typical that exchanges, because they fall into the currency exchange umbrella, must adhere to Know Your Customer regulations, which have become more and more prevalent to combat money laundering. In the United States, for example, these rules have been in place since 2002 as a result of the Patriot Act. Regulations vary by jurisdiction, so be sure to consult with an attorney familiar with the industry.
2.Attain funding for venture.3.Find a technology solution provider.
Why white label with source code? White label exchange software with full source code allows all the customization of a custom-build exchange while decreasing time to market and overall cost significantly.
5.Partner with a payment processor.
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How To Start Trade For Beginners
Many market analysts have always emphasized employing the right trading strategies. One is because the profit-loss cycle has seen several traders make huge profits while others were driven out of the markets without a penny.
Thus, carrying out extensive research into the industry is one of the best moves. Another factor to consider is identifying the reliable and regulated platform for your course. The right platform will offer the best investment tools to buy and sell different cryptocurrencies.
After settling on the trading platform, you need to follow these easy steps.
Is Too Late To Buy Bitcoin
Last week, when Bitcoin reached a new all-time high of nearly $67,000 per coin, many individuals thought they did not get the opportunity to invest in Bitcoin due to its high price. The question they are asking is, Is it too late to buy Bitcoin?.
If every Bitcoin is mined, staked, and locked in a safe online vault or on a cold storage device, it will only be too late. The end of money is near, especially if you consider that there are nearly 48 million millionaires around the world, and there will only ever be 21 million Bitcoins produced.
In conclusion, even at these high Bitcoin valuations, its a good idea to dollar cost average, or put as much into bitcoin each week as its possible, every month even if you cant afford it. Particularly since individuals can purchase fractional amounts of the grandfather of all crypto-currencies. The coins value will likely increase even more once it has been purchased and stored away for good.
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Why You Need A Trading Plan
Heres why a crypto trading strategy is crucial to your success:
- Its a map. Having and maintaining a trading strategy is akin to having a map. It guides your trades, helping you know when to trade, how, and why to perform a certain trade.
- Keeps emotions at bay. One of the biggest challenges facing traders is the interference of feelings and emotions. These become an impediment when an assets price starts trending in the opposite direction to a bet. In cryptocurrency, this happens so frequently that it easily leads to an emotional roller coaster. Successful traders have learned to keep trades free of emotions by sticking to their trading plans.
- Risk management. Having a trading plan effectively forces you to do the research necessary to create one, and part of that research is the risk factor to consider for every trade. Risk identification is the first step toward risk management.
Here are some of the popular strategies used by highly successful traders and investors:
How Do I Start Trading Cryptocurrency
If youve decided youd like to start trading, here are a few things to consider.
Firstly, youll, of course, need capital to trade with. If you dont have savings and start trading with money you cant lose, it can have a seriously detrimental impact on your life. Trading isnt an easy feat an overwhelming majority of beginner traders lose money. Youll need to expect that the money you put aside for trading can vanish quickly, and you may never recover your losses. This is why its recommended to start with smaller amounts to test out the waters.
Something else youll also need to think about is your overall trading strategy. There are a lot of possible avenues to take when it comes to making money in the financial markets. Depending on the time and effort you can put into this undertaking, you can choose between many different strategies to achieve your financial goals.
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What Is The Dow Theory
The Dow Theory is a financial framework modeled on the ideas of Charles Dow. Dow founded the Wall Street Journal and helped create the first US stock indices, known as the Dow Jones Transportation Average and Dow Jones Industrial Average .
Though the Dow Theory was never formalized by Dow himself, it can be seen as an aggregation of the market principles presented in his writings. Here are some of the key takeaways:
- Everything is priced in Dow was a proponent of the efficient market hypothesis , the idea that markets reflect all of the available information on the price of their assets.
- Dow is often credited with the very notion of market trends as we know them today, distinguishing between primary, secondary, and tertiary trends.
- The phases of a primary trend in primary trends, Dow identifies three phases: accumulation, public participation, and excess & distribution.
- Cross-index correlation Dow believed that a trend in one index couldnt be confirmed unless it was observable in another index.
- The importance of volume a trend must also be confirmed by high trading volume.
- Trends are valid until reversal if a trend is confirmed, it continues until a definite reversal occurs.
Its worth remembering that this isnt an exact science its a theory, and it might not hold true. Still, its a theory that remains hugely influential, and many traders and investors consider it an integral part of their methodology.
Advantages Of Trading Bitcoin
1. Lightning Fast Transactions:
A transaction involving fiat currency takes days, even weeks, to complete. That is not the case with cryptocurrencies. No matter what time it is, your money will be sent instantly! There are no middlemen, so there is no waiting time or hassle. Visit the Bitcoin Loophole website to send your friend Bitcoin from another country. When you enter the recipients bitcoin address, the transfer will be carried out without any limits .
2. Lower Transaction Fees:
Would it be possible to withdraw money from your bank account for more than $35? You may be charged if you withdraw more than $1000. Unlike Bitcoin transactions, Bitcoin transactions are fee-free, except for a small transaction fee . So you do not have to worry about this either.
For those who value privacy, bitcoin transactions are anonymous. Bitcoin wallet owners have a public key that serves as their bitcoin addresses, and this key is the only information required to execute a transaction. Unlike credit cards, Bitcoin requires your name, address, or other information. To accept payment, you only need the recipients address!
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Select A Bitcoin Wallet
When possible, cryptocurrencies should be stored in wallets, essentially bank accounts for cryptocurrencies. Importantly, if you store your Bitcoin on cryptocurrency exchanges, the exchanges technically have control over the crypto. But if you withdraw to a wallet, you have complete control over your digital assets. This is very important: if you keep your funds in exchanges, theres a chance that the exchange might go bust, or the owners run away with customer funds.
When picking out a Bitcoin Wallet, make sure that you consider backup and security features. There are generally two forms of wallets: hot and cold wallets.
A hot wallet is one connected to the internet: if a hacker managed to gain control of it via some malicious code, then theyd be able to get to your Bitcoins. But its more convenient: these wallets are connected to the internet, via mobile, desktop, or web apps, meaning you can use them straight away. Theyre also free. Popular hot wallets include Electroneum or Trust Wallet.
Think of the hot wallet as the one you carry to the mall: its full of cash, but easier to steal. By contrast, a cold wallet is the equivalent of storing your cash in a safe: its very secure, but isnt very convenient to use.
Increasing Demand For Crypto Trading
Cryptocurrency trading has picked up in the last few years, and the demand will only surge in the future. If you can set yourself up as a renowned business now before the market saturates, it is a very clever way to set yourself up for success. Selecting the country to operate in and cryptocurrencies to list is equally important to find a specific type of investor or trader.
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How To Buy Bitcoin
Investing in Bitcoin can seem complicated, but it is much easier when you break it down into steps. Investing or trading Bitcoin only requires an account at a service or an exchange, although further safe storage practices are recommended.
There are several things that aspiring Bitcoin investors need: a cryptocurrency exchange account, personal identification documents if you are using a Know Your Customer platform, a secure connection to the internet, and a method of payment. It is also recommended that you have your own personal wallet outside of the exchange account. Valid methods of payment using this path include bank accounts, debit cards, and credit cards. It is also possible to get Bitcoin at specialized ATMs and via P2P exchanges. Be aware, however, that Bitcoin ATMs have increasingly required government-issued IDs as of early 2020.
Few Important Things Before You Start Investing In Bitcoin:
FAQs related to investing in Bitcoin:
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Can Set Up An Exchange In Minutes
“Ready-made” white label crypto exchange products allow serial entrepreneurs and cryptocurrency enthusiasts to create their exchange. Skalex and BithollaEX are examples of an open-source, cost-effective solution that comes with its in-built liquidity provider. This means a new exchange can be launched quickly with minimal risk and efficient use of finances to focus branding and marketing.
Cryptocurrency Trading Vs Investing
As you learn how to buy and trade cryptocurrencies, you must differentiate between crypto trading and investing. What is the difference? Which is better? And, how do you take advantage of this distinction to effectively make your trades? The two terms are often used interchangeably, but they are different.
They are only similar to the extent that the end goal is the same gaining profit from your activities. They are different in that results from trading activities are generally expected within a short to medium-term period. This could be anything from minutes or hours to a few days or weeks. With investing, the trader is in it for the long haul. Were talking about months all the way to years or even more.
As a beginner, you probably want to choose a trading strategy that involves medium to long-term trading and investing. This will typically require more time to research and analyze your trades before committing.
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